Analysis by Component Type (Converter, Electric Motor, Inverter, Battery Management System, On-board Charger, and Cell Module Controller); by Device Type (Module, Power IC, and Discrete); by Application (Safety & Security Electronics, Body Electronics, and Powertrain); and by Vehicle Type (Passenger Cars, and Commercial Vehicles) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive powertrain electronics market is estimated to garner a revenue of ~USD 105 Billion by the end of 2033 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2033. Further, the market garnered a revenue of ~USD 55 Billion in the year 2022. The growth of the market can be attributed to the dynamically growing number of automobiles worldwide, along with a surge in the demand for automotive electronic components. For instance, electronics are projected to account for about 50% of a cost of the new car by 2030. Further, the rising surge for the deployment of powertrain electronics on the back of the several associated benefits of replacing conventional mechanical systems is another major factor that is anticipated to propel the market growth throughout the projected time frame.
In addition to these, factors that are believed to fuel the market growth of automotive powertrain electronics include the rising use of electrical power in automobiles as a result of surging demand for innovative functions and new standards for better delivering traditional functions. Therefore, the control of automotive electronics, such as contemporary electric power steering, the main inverter, braking systems, and others, is greatly influenced by the utilization of powertrain electronics in automotive applications. Additionally, with the recent advancements in powertrain designs as well as engine cooling systems, the demand for automotive powertrain electronics is on the rise amongst the manufacturers, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive powertrain electronics market during the forecast period. For instance, it is observed that an automotive engine cooling system is a crucial part of an automobile as ~40 % of the heat generated while running an engine escapes through exhaust and frictional losses, while nearly 25% is used for power, and the remaining 30-35% is transferred to engine components.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 55 Billion |
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Forecast Year Market Size (2033) |
~ USD 105 Billion |
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Regional Scope |
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Growth Drivers
The Rising Trend of Autonomous Vehicles - Electronic control units (ECUs) and domain control units (DCUs) will be used increasingly in autonomous-driving applications. Car manufacturers are rapidly providing cars with features where little or no human intervention is required, relying on electronic systems to control the vehicle. The rising penetration of autonomous cars is expected to escalate the global automotive powertrain electronics market in the forecasted period. It was found that there were over 30 million autonomous cars globally in 2019, and this number is expected to reach nearly 54 million in 2024.
Increasing Need for Electric Propulsion Systems – Electric vehicles are witnessing mass adoption rates throughout the world, owing to increased knowledge about the harmful effects of fossil fuels on the environment. The increasing need for electric propulsion is another significant factor that is estimated to boost the growth of the global automotive powertrain electronics market over the forecast period. For instance, the number of electric vehicles (EVs) in the United States is estimated to reach over 25 million by 2030.
Worldwide Rising Graph of Connected Vehicles – For instance, the proportion of connected vehicles is estimated to be approximately 480 million throughout the world by 2025.
Growing Vehicle Fleet – Increasing Vehicle feet is expected to boost the demand for automotive powertrain electronics with research and custom development of advanced electronics used in automobiles to improve its overall performance and longevity. For instance, it was found that the Indian auto industry produced a total of 22,933,000 vehicles in the financial year 2020.
Regulation to Reduce Carbon Dioxide (CO2) Emission - With more and more commercial vehicles with electric powertrains on the roads, truck manufacturers are taking steps to achieve a 15% reduction in CO2 emissions by 2025, as mandated by the European Union.
Challenges
The global automotive powertrain electronics market is segmented and analyzed for demand and supply by vehicle type into passenger cars, and commercial vehicles. Out of the two types of segments, the passenger cars segment is anticipated to garner the largest revenue by the end of 2033. The growth of the segment can be attributed to the growing demand for passenger vehicles, along with the surge in the production of passenger cars worldwide. For instance, globally more than 55 million passenger cars were produced worldwide in 2021. Furthermore, rising consumer awareness regarding the associated benefits of power electronic applications along with electric mobility solutions is another significant factor that is projected to spur market growth over the forecast period.
The global automotive powertrain electronics market is also segmented and analyzed for demand and supply by component type into converter, electric motor, inverter, battery management system, on-board charger, and cell module controller. Amongst these six segments, the electric motor segment is expected to garner a significant share backed by the lessened maintenance cost, followed by the surge in the carbon emission standards imposed by the governments of nations. Moreover, these factors are estimated to fuel the electric motors market further in the coming years. On the other hand, the battery management system segment is projected to witness constant growth during the forecast period, owing to its great efficiency to improve the battery life of the vehicle. This, as a result, is projected to create prominent opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global automotive powertrain electronics market includes the following segments:
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By Component Type |
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By Device Type |
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By Application |
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By Vehicle Type |
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The Asia Pacific automotive powertrain electronics market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the presence of a strong automobile network in the region, coupled with rising demand for EV batteries. For instance, it was found that as of 2022 China dominated EV battery production with approximately 70% of all battery cells. Further, a significantly increasing number of electric vehicles (EVs) along with the expansion of manufacturing organizations' production volume are also anticipated to boost the market growth during the forecast period.
Furthermore, the Europe automotive powertrain electronics market is also anticipated to display notable market growth by the end of 2033. The growth of the market can be attributed to the highly surging demand for electric vehicles in the region, followed by the stringent laws imposed by the government to accomplish a zero-carbon footprint. For instance, in Norway, electric car sales surpassed nearly 85% in the year 2021. In addition to this, growing investment in research and development activities to manufacture fuel-efficient, low-carbon-releasing powertrains in the coming years.
Schaeffler AG developed high-performance electric motors for commercial vehicles that are more than 97 percent efficient providing a continuous drive power output of up to 300 kW. It has 800-volt power electronics that deliver weight and cost savings for manufacturers, and require shorter charging times with an innovative thermal management system.
Renesas Electronics Corporation announced a new Intelligent Power Device (IPD) for automobiles, known as the RAJ2810024H12HPD. With this device, vehicles can distribute power safely and flexibly, addressing E/E (electrical/electronic) architecture requirements in the future.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Rising trend of autonomous vehicles, increasing need for electric propulsion systems, and worldwide rising graph of connected vehicles are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of 7% over the forecast period, i.e., 2023 – 2033.
Ans: Shortage of raw materials, especially semiconductor chips, lack of efficiency, and low-cost power module packaging are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Schaeffler AG, AVL List GmbH, SEG Automotive Germany GmbH, Robert Bosch GmbH, Mitsubishi Electric Corporation, Infineon Technologies AG, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by component type, device type, application, vehicle type, and by region.
Ans: The passenger cars segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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